Management thoughts

39
BUSINESS BUSINESS ORGANIZATION AND ORGANIZATION AND MANAGEMENT MANAGEMENT MANAGEMENT THOUGHTS MANAGEMENT THOUGHTS

description

 

Transcript of Management thoughts

Page 1: Management thoughts

BUSINESS BUSINESS ORGANIZATION AND ORGANIZATION AND

MANAGEMENTMANAGEMENT

MANAGEMENT THOUGHTSMANAGEMENT THOUGHTS

Page 2: Management thoughts

MANAGEMENT THOUGHTSMANAGEMENT THOUGHTS

MATHROUGH NAGEMENT THOUGHTS MATHROUGH NAGEMENT THOUGHTS HAS PASSED VARIOUS STAGES TO HAS PASSED VARIOUS STAGES TO REACH ITS PRESENT LEVELREACH ITS PRESENT LEVEL

FOR THE PURPOSE OF STUDY IT IS FOR THE PURPOSE OF STUDY IT IS DIVIDED INTO THREE STAGESDIVIDED INTO THREE STAGES

Page 3: Management thoughts

STAGES IN MANAGEMENT STAGES IN MANAGEMENT THOUGHTTHOUGHT

1.1. THE CLASSICAL THEORY OF THE CLASSICAL THEORY OF MANAGEMENTMANAGEMENT

a)a) BUREACRATIC MODEL – MAX WEBBERBUREACRATIC MODEL – MAX WEBBER

b)b) SCIENTIFIC MANAGEMENT – FW SCIENTIFIC MANAGEMENT – FW TAYLORTAYLOR

c)c) PROCESS MANAGEMENT – HENRY PROCESS MANAGEMENT – HENRY FAYOLFAYOL

Page 4: Management thoughts

STAGES IN MANAGEMENT STAGES IN MANAGEMENT THOUGHTTHOUGHT

2.2. NEO CLASSICAL THEORYNEO CLASSICAL THEORYa)a) HUMAN RELATIONS MOVEMENT – HUMAN RELATIONS MOVEMENT –

ELTON MAYOELTON MAYO

b)b) BEHAVIOURAL SCIENCE MOVEMENT – BEHAVIOURAL SCIENCE MOVEMENT – A MASLOW & McGREGORA MASLOW & McGREGOR

Page 5: Management thoughts

STAGES IN MANAGEMENT STAGES IN MANAGEMENT THOUGHTTHOUGHT

3 MODERN MANAGEMENT THEORIES3 MODERN MANAGEMENT THEORIESa)a) QUANTITATIVE APPROACH – TAYLORQUANTITATIVE APPROACH – TAYLOR

b)b) SYSTEMS APPROACH – BOULDING, SYSTEMS APPROACH – BOULDING, JOHNSONJOHNSON

c)c) CONTINGENCY APPROACH – LORSCH, CONTINGENCY APPROACH – LORSCH, LAWRENCELAWRENCE

Page 6: Management thoughts

CLASSICAL THEORY OF CLASSICAL THEORY OF MANAGEMENTMANAGEMENT

IT WAS ONLY IN THE SECOND HALF OF 18IT WAS ONLY IN THE SECOND HALF OF 18THTH CENTURY THAT – JAMES WATT, CENTURY THAT – JAMES WATT, BOULTON,ROBERT OWEN AND CHARLES BOULTON,ROBERT OWEN AND CHARLES BABBAGE GAVE SERIOUS THOUGHT TO BABBAGE GAVE SERIOUS THOUGHT TO PROBLEMS OF MANAGEMENT PROBLEMS OF MANAGEMENT

THIS PERIOD IS ALSO KNOWN AS PRE-THIS PERIOD IS ALSO KNOWN AS PRE-TAYLOR PERIOD. TAYLOR PERIOD.

IT IS ONLY WHEN MAX WEBBER IT IS ONLY WHEN MAX WEBBER INTRODUCED BUREACRATIC MODEL INTRODUCED BUREACRATIC MODEL AROUND 1900 THAT THE FIRST SYSTEMATIC AROUND 1900 THAT THE FIRST SYSTEMATIC MANAGEMENT THEORY IS SAID TO HAVE MANAGEMENT THEORY IS SAID TO HAVE EMERGEDEMERGED

Page 7: Management thoughts

ROBERT OWEN (1771- ROBERT OWEN (1771- 1858)1858)

HE IS CALLED AS FATHER OF MODERN HE IS CALLED AS FATHER OF MODERN PERSONNEL MANAGEMENTPERSONNEL MANAGEMENT

HE STRESSED ON HE STRESSED ON 1.1. IMPROVEMENT IN WORKING CONDITIONSIMPROVEMENT IN WORKING CONDITIONS2.2. REDUCTION IN WORKING HOURSREDUCTION IN WORKING HOURS3.3. PROVIDING NECESSITIES TO WORKERS PROVIDING NECESSITIES TO WORKERS

ON SUBSIDISED RATESON SUBSIDISED RATES4.4. FIXING MINIMUM AGE FOR CHILD FIXING MINIMUM AGE FOR CHILD

WORKERSWORKERS

Page 8: Management thoughts

CHARLES BABBAGE (1792 – CHARLES BABBAGE (1792 – 1871)1871)

HIS MAIN EMPHASIS WAS ON USE OF HIS MAIN EMPHASIS WAS ON USE OF MATHEMATICS AND SCIENCE TO THE MATHEMATICS AND SCIENCE TO THE OPERATIONS OF FACTORYOPERATIONS OF FACTORY

1.1. DIVISION OF WORKDIVISION OF WORK2.2. ASSIGNMENT OF WORK ON THE BASIS OF SKILL ASSIGNMENT OF WORK ON THE BASIS OF SKILL

OF LABOUROF LABOUR3.3. DECISIONS BASED ON ACCURATE KNOWLEDGEDECISIONS BASED ON ACCURATE KNOWLEDGE4.4. NEED FOR REDUCING COST BY INTRODUCING NEED FOR REDUCING COST BY INTRODUCING

IMPROVED METHOD OF WORKIMPROVED METHOD OF WORK5.5. HE INVENTED BABBAGE CALCULATING HE INVENTED BABBAGE CALCULATING

MACHINE – CALCULATORMACHINE – CALCULATOR6.6. OPTIMUM UTILISATION OF MACHINESOPTIMUM UTILISATION OF MACHINES7.7. SPECIALISATION AND WAGE INCENTIVESSPECIALISATION AND WAGE INCENTIVES

Page 9: Management thoughts

EXERCISE OF AUTHORITYEXERCISE OF AUTHORITY

HE HAS GIVEN THREE TYPES OF HE HAS GIVEN THREE TYPES OF AUTHORITY STRUCTURES,THEY AREAUTHORITY STRUCTURES,THEY ARE

1.1. CHARISMATICCHARISMATIC

2.2. TRADITIONALTRADITIONAL

3.3. BUREACRATICBUREACRATIC

Page 10: Management thoughts

WEBBER’S BUREACRATIC WEBBER’S BUREACRATIC MODELMODEL

THE MODEL INCLUDED THE FOLLOWING:THE MODEL INCLUDED THE FOLLOWING:1.1. SEPARATION BETWEEN SUPERIOR AND SEPARATION BETWEEN SUPERIOR AND

SUBORDINATESUBORDINATE2.2. DIVISION OF LABOUR BASED ON DIVISION OF LABOUR BASED ON

COMPETENCE & FUNCTIONAL COMPETENCE & FUNCTIONAL SPECIALISATIONSPECIALISATION

3.3. DIVORCE BETWEEN PERSONAL AND DIVORCE BETWEEN PERSONAL AND OFFICIAL MATTERSOFFICIAL MATTERS

4.4. SYSTEM OF RULES, REGULATIONS AND SYSTEM OF RULES, REGULATIONS AND PROCEDURESPROCEDURES

5.5. HIERARCHY IN POSITIONS BASED ON HIERARCHY IN POSITIONS BASED ON LEGAL AUTHORITYLEGAL AUTHORITY

Page 11: Management thoughts

SCIENTIFIC MANAGEMENT –SCIENTIFIC MANAGEMENT – FW TAYLOR (1856 – 1915) FW TAYLOR (1856 – 1915)

KNOWN AS FATHER OF SCIENTIFIC KNOWN AS FATHER OF SCIENTIFIC MANAGEMENTMANAGEMENT

THERE IS A SCIENCE FOR DOING EACH JOB THERE IS A SCIENCE FOR DOING EACH JOB IS THE BELIEFIS THE BELIEF

REPLACEMENT OF SCIENTIFIC METHODS IN REPLACEMENT OF SCIENTIFIC METHODS IN PLACE OF RULE OF THUMB METHODSPLACE OF RULE OF THUMB METHODS

ONE BEST WAY OF DOING THINGS – FOR ONE BEST WAY OF DOING THINGS – FOR ANY SITUATIONANY SITUATION

DEFINED MANAGEMENT AS ART OF DEFINED MANAGEMENT AS ART OF KNOWING EXACTLY WHAT YOU WANT MEN KNOWING EXACTLY WHAT YOU WANT MEN TO DO & SEE THAT THEY DO IT IN THE TO DO & SEE THAT THEY DO IT IN THE BEST AND CHEAPEST WAYBEST AND CHEAPEST WAY

Page 12: Management thoughts

SCIENTIFIC MANAGEMENT – FW SCIENTIFIC MANAGEMENT – FW TAYLOR (1856 – 1915)TAYLOR (1856 – 1915)

ELEMENTS OF SCIENTIFIC MANAGEMENTELEMENTS OF SCIENTIFIC MANAGEMENT1.1. WORK STUDYWORK STUDY

2.2. STANDARDISATION OF TOOLS AND STANDARDISATION OF TOOLS AND EQUIPMENTSEQUIPMENTS

3.3. SCIENTIFIC SELECTION, PLACEMENT AND SCIENTIFIC SELECTION, PLACEMENT AND TRAININGTRAINING

4.4. INTRODUCTION OF FUNCTIONAL INTRODUCTION OF FUNCTIONAL FOREMANSHIPFOREMANSHIP

5.5. INTRODUCTION OF COSTING SYSTEMINTRODUCTION OF COSTING SYSTEM

6.6. MENTAL REVOLUTIONMENTAL REVOLUTION

Page 13: Management thoughts

PROCESS MANAGEMENT – PROCESS MANAGEMENT – HENRY FAYOL (1841 – 1925)HENRY FAYOL (1841 – 1925)

HIS CONTRIBUTIONS ARE HIS CONTRIBUTIONS ARE CLASSIFIED AS THREE:CLASSIFIED AS THREE:

1.1. CLASSIFICATION OF BUSINESS CLASSIFICATION OF BUSINESS ACTIVITIESACTIVITIES

2.2. FUNCTIONS OF MANAGEMENTFUNCTIONS OF MANAGEMENT

3.3. PRINCIPLES OF MANAGEMENTPRINCIPLES OF MANAGEMENT

Page 14: Management thoughts

CLASSIFICATION OF BUSINESS CLASSIFICATION OF BUSINESS ACTIVITIESACTIVITIES

1.1. TECHNICAL ACTIVITIES – PRODUCTIONTECHNICAL ACTIVITIES – PRODUCTION

2.2. COMMERCIAL ACTIVITIES – BUYING, COMMERCIAL ACTIVITIES – BUYING, SELLING & EXCHANGESELLING & EXCHANGE

3.3. FINANCIAL ACTIVITIES – OPTIMUM USAGE FINANCIAL ACTIVITIES – OPTIMUM USAGE OF CAPITALOF CAPITAL

4.4. SECURITY ACTIVITIES – PRODUCTION OF SECURITY ACTIVITIES – PRODUCTION OF PROPERTY & PERSONSPROPERTY & PERSONS

5.5. ACCOUNTING ACTIVITIESACCOUNTING ACTIVITIES

6.6. MANAGERIAL ACTIVITIESMANAGERIAL ACTIVITIES

Page 15: Management thoughts

NEO CLASSICAL THEORYNEO CLASSICAL THEORY

NEO-CLASSICAL THEORY DEALS WITH NEO-CLASSICAL THEORY DEALS WITH HUMAN FACTORHUMAN FACTOR

ELTON MAYO & MARY PARKER ELTON MAYO & MARY PARKER FOLLETT ARE THE MAIN FOLLETT ARE THE MAIN CONTRIBUTORS OF HUMAN CONTRIBUTORS OF HUMAN RELATIONS APPROACHRELATIONS APPROACH

IT IS THE SOURCE FOR STUDIES OF IT IS THE SOURCE FOR STUDIES OF BEHAVIOURAL SCIENCE BEHAVIOURAL SCIENCE MANAGEMENTMANAGEMENT

Page 16: Management thoughts

HUMAN RELATIONS HUMAN RELATIONS MANAGEMENTMANAGEMENT

STUDY DEALS WITH IMPROVEMENT STUDY DEALS WITH IMPROVEMENT OF:OF:

1.1. WORKING CONDITIONSWORKING CONDITIONS

2.2. LOWERING OF HOURS OF WORKLOWERING OF HOURS OF WORK

3.3. SOCIAL RELATIONS OF WORKERSSOCIAL RELATIONS OF WORKERS

4.4. IMPROVEMENT IN PRODUCTIVITYIMPROVEMENT IN PRODUCTIVITY

Page 17: Management thoughts

ELTON MAYO (1880 – 1949)ELTON MAYO (1880 – 1949)

FATHER OF HUMAN RELATIONS FATHER OF HUMAN RELATIONS MOVEMENTMOVEMENT

A TURNING POINT IN THE DEVELOPMENT A TURNING POINT IN THE DEVELOPMENT OF MANAGEMENT THOUGHTOF MANAGEMENT THOUGHT

HE IS KNOWN FOR HIS WORK ON THE HE IS KNOWN FOR HIS WORK ON THE PROJECT HAWTHORNE STUDIESPROJECT HAWTHORNE STUDIES

THE STUDIES WERE CONDUCTED TO THE STUDIES WERE CONDUCTED TO DETERMINE THE EFFECT OF BETTER DETERMINE THE EFFECT OF BETTER PHYSICAL FACILITIES ON WORKERS’ PHYSICAL FACILITIES ON WORKERS’ OUTPUTOUTPUT

Page 18: Management thoughts

HAWTHORNE EXPERIMENTHAWTHORNE EXPERIMENT

PHASE – 1 INVOLVES 5 GIRLS ENGAGED IN PHASE – 1 INVOLVES 5 GIRLS ENGAGED IN ELECTRICAL ASSEMBLY TESTINGELECTRICAL ASSEMBLY TESTING

THIS EXPERIMENT CONTINUED FOR MORE THIS EXPERIMENT CONTINUED FOR MORE THAN 1½ YEARS THAN 1½ YEARS

THIS STUDY CONCENTRATED ON THIS STUDY CONCENTRATED ON IMPROVEMENT ON PHYSICAL FACILITIES IMPROVEMENT ON PHYSICAL FACILITIES LIKE EXTENDED REST HOURS, ETC. AND LIKE EXTENDED REST HOURS, ETC. AND FOUND THAT THE PRODUCTIVITY OF FOUND THAT THE PRODUCTIVITY OF WORKERS WILL INCREASE WITH BETTER WORKERS WILL INCREASE WITH BETTER FACILITIESFACILITIES

Page 19: Management thoughts

HAWTHORNE EXPERIMENTHAWTHORNE EXPERIMENT

PHASE – II PHASE – II IN THIS PHASE THE EMPLOYEES IN THIS PHASE THE EMPLOYEES

WERE TOLD THAT THEY ARE WERE TOLD THAT THEY ARE IMPROVING THE FACILITIES AND IMPROVING THE FACILITIES AND THEY ARE CHOSEN FOR EXPERIMENT THEY ARE CHOSEN FOR EXPERIMENT – THIS BOOSTED THEIR MORALE – THIS BOOSTED THEIR MORALE AND IMPROVED THE OVERALL AND IMPROVED THE OVERALL PRODUCTIVITY FURTHERPRODUCTIVITY FURTHER

Page 20: Management thoughts

HAWTHORNE EXPERIMENTHAWTHORNE EXPERIMENT

PHASE – III PHASE – III THE LAST OF THE EXPERIMENTS WAS THE LAST OF THE EXPERIMENTS WAS

ON 14 MEN AND 4 SUPERVISORS ON 14 MEN AND 4 SUPERVISORS WORKING IN A BANK WIRING WORKING IN A BANK WIRING OBSERVATION ROOMOBSERVATION ROOM

IT IS FOUND THAT THE INFORMAL IT IS FOUND THAT THE INFORMAL RELATIONSHIPS AMONG THE WORKERS RELATIONSHIPS AMONG THE WORKERS HAVE GREATER ROLE THAN THE DESIRE HAVE GREATER ROLE THAN THE DESIRE OF EARNING HUGE AMOUNTS AND OF EARNING HUGE AMOUNTS AND COMPANY’S FORMAL REQUIREMENTSCOMPANY’S FORMAL REQUIREMENTS

Page 21: Management thoughts

HAWTHORNE EXPERIMENTHAWTHORNE EXPERIMENT

MAIN FINDINGS:MAIN FINDINGS:1.1. WORKERS ARE NOT SIMPLY COGS IN WORKERS ARE NOT SIMPLY COGS IN

THE MACHINERYTHE MACHINERY

2.2. EMPLOYEE MORALE WILL AFFECT ON EMPLOYEE MORALE WILL AFFECT ON THE PRODUCTIVITYTHE PRODUCTIVITY

3.3. EMPLOYEES FORM AS SOCIAL GROUPS EMPLOYEES FORM AS SOCIAL GROUPS IN THE ORGANIZATIONIN THE ORGANIZATION

4.4. MANAGEMENT SHOULD UNDERSTAND MANAGEMENT SHOULD UNDERSTAND THE GROUP ATTITUDE AND THE GROUP ATTITUDE AND PSYCHOLOGYPSYCHOLOGY

Page 22: Management thoughts

MARY PARKER FOLLETTMARY PARKER FOLLETT(1868 - 1933)(1868 - 1933)

EMPHASIS ON PSYCHOLOGICAL ASPECTS EMPHASIS ON PSYCHOLOGICAL ASPECTS OF WORKERS – Vs. ELTON MAYO’S ON OF WORKERS – Vs. ELTON MAYO’S ON PHYSICAL CONDITIONSPHYSICAL CONDITIONS

PARTICIPATION OF WORKERS IN THE PARTICIPATION OF WORKERS IN THE DECISION MAKING PROCESS IMPROVES DECISION MAKING PROCESS IMPROVES THE RESPONSIBILITY OF THE WORKERS THE RESPONSIBILITY OF THE WORKERS

HER MAIN CONCERN WAS EFFICIENT USE HER MAIN CONCERN WAS EFFICIENT USE OF PEOPLEOF PEOPLE

SHE HAS A REPUTATION AS A PIONEER OF SHE HAS A REPUTATION AS A PIONEER OF HUMAN RELATIONS APPROACHHUMAN RELATIONS APPROACH

Page 23: Management thoughts

BEHAVIOURAL SCIENCE BEHAVIOURAL SCIENCE MOVEMENTMOVEMENT

FURTHER IMPROVEMENT OF HUMAN FURTHER IMPROVEMENT OF HUMAN RELATIONS MOVEMENTRELATIONS MOVEMENT

INTRODUCED BY ABRAHAM MASLOW INTRODUCED BY ABRAHAM MASLOW & DOUGLAS McGREGOR FOLLOWED & DOUGLAS McGREGOR FOLLOWED BY RENSI LINKERT, CHESTER BY RENSI LINKERT, CHESTER BERNARDBERNARD

Page 24: Management thoughts

BEHAVIOURAL SCIENCE BEHAVIOURAL SCIENCE MOVEMENTMOVEMENT

IMPORTANT ASPECTS OF THIS IMPORTANT ASPECTS OF THIS APPROACH:APPROACH:

1.1. MOTIVATIONMOTIVATION

2.2. ORGANISATION AS A SOCIAL SYSTEMORGANISATION AS A SOCIAL SYSTEM

3.3. LEADERSHIPLEADERSHIP

4.4. COMMUNICATIONCOMMUNICATION

5.5. EMPLOYEE DEVELOPMENTEMPLOYEE DEVELOPMENT

Page 25: Management thoughts

ABRAHAM MASLOWABRAHAM MASLOW

MASLOW’S NEED HIERARCHY MASLOW’S NEED HIERARCHY THEORY:THEORY:

1.1. PHYSIOLOGICAL NEEDSPHYSIOLOGICAL NEEDS

2.2. SAFETY NEEDSSAFETY NEEDS

3.3. SOCIAL NEEDSSOCIAL NEEDS

4.4. EGO OR ESTEEM NEEDSEGO OR ESTEEM NEEDS

5.5. SELF FULFILMENT OR ACTUALIZATIONSELF FULFILMENT OR ACTUALIZATION

Page 26: Management thoughts

DOUGLAS McGREGOR (1906 – DOUGLAS McGREGOR (1906 – 1964)1964)

HE IS KNOWN FOR DEVELOPMENT OF HE IS KNOWN FOR DEVELOPMENT OF THEORY ON MOTIVATIONTHEORY ON MOTIVATION

HE NAMED IT AS THEORY X AND THEORY YHE NAMED IT AS THEORY X AND THEORY Y

Page 27: Management thoughts

DOUGLAS McGREGOR (1906 – DOUGLAS McGREGOR (1906 – 1964)1964)

THEORY – XTHEORY – X THEORY – Y THEORY – Y WORKER IS LAZY AND WORKER IS LAZY AND DISLIKES WORKDISLIKES WORK

PEOPLE ARE NOT LAZY BY PEOPLE ARE NOT LAZY BY NATURE BUT THE TREAT-MENT NATURE BUT THE TREAT-MENT IN ORGANIZATION MAKES IN ORGANIZATION MAKES THEM SOTHEM SO

THEY ARE UNAMBITIOUS THEY ARE UNAMBITIOUS AND AVOID RESPONSI-AND AVOID RESPONSI-BILITYBILITY

THEY ARE AMBITIOUS AND THEY ARE AMBITIOUS AND THEY ACCEPT RESPONSIBILITY THEY ACCEPT RESPONSIBILITY UNDER PROPER CONDITIONSUNDER PROPER CONDITIONS

THEY ARE NOT BOTHERED THEY ARE NOT BOTHERED ABOUT ORGANIZATIONAL ABOUT ORGANIZATIONAL OBJECTIVES – THEY OBJECTIVES – THEY SHOULD BE DIRECTEDSHOULD BE DIRECTED

THEY WILL EXERCISE SELF THEY WILL EXERCISE SELF CONTROL AND SELF CONTROL AND SELF DIRECTION – NEED NOT BE DIRECTION – NEED NOT BE DIRECTEDDIRECTED

Page 28: Management thoughts

RENSIS LIKERT (1903 – RENSIS LIKERT (1903 – 1972) 1972)

HE WAS OF THE VIEW THAT HE WAS OF THE VIEW THAT TRADITIONAL JOB ORIENTED TRADITIONAL JOB ORIENTED SUPERVISION WAS THE CAUSE OF SUPERVISION WAS THE CAUSE OF LOW PRODUCTIVITY AND LOW LOW PRODUCTIVITY AND LOW MORALEMORALE

HE SUGGESTED PARTICIPATIVE HE SUGGESTED PARTICIPATIVE MANAGEMENT IN DECISION MAKINGMANAGEMENT IN DECISION MAKING

HE CLASSIFIED MANAGEMENT STYLES HE CLASSIFIED MANAGEMENT STYLES INTO FOUR CATEGORIESINTO FOUR CATEGORIES

Page 29: Management thoughts

RENSIS LIKERTRENSIS LIKERT

FOUR CATEGORIESFOUR CATEGORIES1.1. EXPLOITATIVE AUTOCRATICEXPLOITATIVE AUTOCRATIC

2.2. BENEVOLENT AUTOCRATICBENEVOLENT AUTOCRATIC

3.3. PARTICIPATIVEPARTICIPATIVE

4.4. DEMOCRATICDEMOCRATIC

Page 30: Management thoughts

RENSIS LIKERTRENSIS LIKERT

1.Exploitative Autocratic: There is no 1.Exploitative Autocratic: There is no participation of workers because participation of workers because these leaders have no confidence in these leaders have no confidence in themthem

2.Benevolent Autocratic: There is no 2.Benevolent Autocratic: There is no proper confidence in subordinates and proper confidence in subordinates and the relationship is that of master and the relationship is that of master and servantservant

Page 31: Management thoughts

RENSIS LIKERTRENSIS LIKERT

3.Participative: The subordinates are 3.Participative: The subordinates are allowed to participate in decision allowed to participate in decision involving their lives. Leaders does not involving their lives. Leaders does not have full confidence in themhave full confidence in them

4.Democratic: In this style the 4.Democratic: In this style the confidence in subordinates is full and confidence in subordinates is full and they meaningfully participate in they meaningfully participate in decision makingdecision making

Page 32: Management thoughts

CHESTER I BERNARD (1886 – CHESTER I BERNARD (1886 – 1961) 1961)

HE ADOPTED A SOCIOLOGICAL APPROACHHE ADOPTED A SOCIOLOGICAL APPROACH EMPHASISED ON THE IMPORTANCE OF EMPHASISED ON THE IMPORTANCE OF

LEADERSHIP AND COMMUNICATIONLEADERSHIP AND COMMUNICATION DIVIDED ORGANIZATION INTO FORMAL DIVIDED ORGANIZATION INTO FORMAL

AND INFORMALAND INFORMAL HE DIVIDED FUNCTIONS OF EXECUTIVES IN HE DIVIDED FUNCTIONS OF EXECUTIVES IN

TO THREE CATEGORIESTO THREE CATEGORIES1.1. PROVIDING SYSTEM OF COMMUNICATIONPROVIDING SYSTEM OF COMMUNICATION

2.2. SECURING EFFECTSSECURING EFFECTS

3.3. FORMULATING AND DEFINING PURPOSEFORMULATING AND DEFINING PURPOSE

Page 33: Management thoughts

III MODERN MANAGEMENT III MODERN MANAGEMENT THEORIESTHEORIES

QUANTITATIVE APPROACHQUANTITATIVE APPROACH SYSTEM APPROACHSYSTEM APPROACH CONTINGENCY APPROACHCONTINGENCY APPROACH

Page 34: Management thoughts

QUANTITATIVE APPROACHQUANTITATIVE APPROACH

MATHEMATICS IS RECOGNIZED AS MATHEMATICS IS RECOGNIZED AS AN IMPORTANT TOOL OFANALYSIS AN IMPORTANT TOOL OFANALYSIS AND A LANGUAGE FOR EXPRESSION AND A LANGUAGE FOR EXPRESSION OF CONCEPTOF CONCEPT

PROBLEMS CAN BE EXPRESSED IN PROBLEMS CAN BE EXPRESSED IN TERMS OF SYMBOLS AND TERMS OF SYMBOLS AND RELATIONSHIPRELATIONSHIP

Page 35: Management thoughts

FEATURES OF QUANTITATIVE FEATURES OF QUANTITATIVE APPROACHAPPROACH

MANAGEMENT IS CONCERNED WITH MANAGEMENT IS CONCERNED WITH PROBLEM SOLVING AND MUST USE PROBLEM SOLVING AND MUST USE MATHEMATICAL TOOLS TO SOLVE THEMMATHEMATICAL TOOLS TO SOLVE THEM

MATHEMATICAL SYMBOLS CAN BE MATHEMATICAL SYMBOLS CAN BE USED TO DESCRIBE MANAGERIAL USED TO DESCRIBE MANAGERIAL PROBLEMSPROBLEMS

MATHEMATICAL TOOLS – OPERATIONS MATHEMATICAL TOOLS – OPERATIONS RESEARCH, SIMULATION AND MODEL RESEARCH, SIMULATION AND MODEL BUILDINGS ARE USED TO FIND BUILDINGS ARE USED TO FIND SOLUTIONSSOLUTIONS

Page 36: Management thoughts

LIMITATIONS OF QUANTATIVE LIMITATIONS OF QUANTATIVE APPROACHAPPROACH

MANAGEMENT HAS MANY OTHER FUNCTIONS MANAGEMENT HAS MANY OTHER FUNCTIONS OTHER THAN DECISION MAKINGOTHER THAN DECISION MAKING

THIS APPROACH DOES NOT GIVE ANY THIS APPROACH DOES NOT GIVE ANY WEIGHTAGE TO HUMAN ELEMENTWEIGHTAGE TO HUMAN ELEMENT

IN PRACTICAL LIFE – MANAGERS HAVE TO IN PRACTICAL LIFE – MANAGERS HAVE TO TAKE DECISIONS WITHOUT WAITING FOR TAKE DECISIONS WITHOUT WAITING FOR DEVELOPING OF MODELSDEVELOPING OF MODELS

THIS APPROACH PRESUMES ALL VARIABLES THIS APPROACH PRESUMES ALL VARIABLES OF DECISION MAKING ARE MEASURABLEOF DECISION MAKING ARE MEASURABLE

Page 37: Management thoughts

SYSTEMS APPROACHSYSTEMS APPROACH THIS APPROACH LOOKS UPON THE THIS APPROACH LOOKS UPON THE

MANAGEMENT AS A SYSTEMMANAGEMENT AS A SYSTEM FEATURES:FEATURES:

1.1. AN ORGANIZATION CONSISTS OF MANY SUB-AN ORGANIZATION CONSISTS OF MANY SUB-SYSTEMSSYSTEMS

2.2. ALL SUB-SYSTEMS ARE MUTUALLY RELATED TO ALL SUB-SYSTEMS ARE MUTUALLY RELATED TO EACH OTHEREACH OTHER

3.3. THE SUB-PART SHOULD BE STUDIES IN THEIR THE SUB-PART SHOULD BE STUDIES IN THEIR INTER RELATIONSHIPINTER RELATIONSHIP

4.4. THE ORGANIZATION PROVIDES A BOUNDARY THE ORGANIZATION PROVIDES A BOUNDARY WHICH SEPARATES ITWHICH SEPARATES IT

5.5. CHESTER BERNARD WAS THE FIRST TO SEE CHESTER BERNARD WAS THE FIRST TO SEE MANAGEMENTIN THE CONTEXT OF A SYSTEMMANAGEMENTIN THE CONTEXT OF A SYSTEM

6.6. THIS APPROACH DOES NOT PROVIDE ANY TOOLS THIS APPROACH DOES NOT PROVIDE ANY TOOLS AND TECHNIQUES FOR EXECUTIVESAND TECHNIQUES FOR EXECUTIVES

Page 38: Management thoughts

CONTINGENCY OR CONTINGENCY OR SITUATIONAL APPROACHSITUATIONAL APPROACH

THIS APPROACH WAS DEVELOPED BY J W THIS APPROACH WAS DEVELOPED BY J W LORSCH & PR LAWRENCE IN 1970 WHO WERE LORSCH & PR LAWRENCE IN 1970 WHO WERE CRITICAL OF OTHER APPROACHES PRE-CRITICAL OF OTHER APPROACHES PRE-SUPPOSING (ONE BEST WAY TO MANAGE)SUPPOSING (ONE BEST WAY TO MANAGE)

FEATURES:FEATURES:1.1. MANAGEMENT IS ENTIRELY SITUATIONALMANAGEMENT IS ENTIRELY SITUATIONAL2.2. MANAGEMENT POLICIES & PROCEDURES SHOULD MANAGEMENT POLICIES & PROCEDURES SHOULD

RESPOND TO ENVIRONMENTAL CONDITIONSRESPOND TO ENVIRONMENTAL CONDITIONS3.3. MANAGER SHOULD UNDERSTAND THAT THERE IS NO MANAGER SHOULD UNDERSTAND THAT THERE IS NO

ONE BEST WAY OF MANAGINGONE BEST WAY OF MANAGING4.4. A MANAGER IS EXPECTED TO KNOW ALL THE A MANAGER IS EXPECTED TO KNOW ALL THE

ALTERNATIVE COURSES OF ACTION BEFORE TAKING ALTERNATIVE COURSES OF ACTION BEFORE TAKING ACTION IN A SITUATION – IT IS NOT ALWAYS POSSIBLEACTION IN A SITUATION – IT IS NOT ALWAYS POSSIBLE

Page 39: Management thoughts

ANY QUERIESANY QUERIES

?